Ibrahim Y.
TO: Proximity Music Team
FROM: Yimaj Ibrahim
DATE: April 15, 2010
SUBJECT: Report Proposal for new business model for music industry
The transformation of the music industry from compact disc to digital recording has created the need for a radical change to the music industry's business plan due to illegal downloads and music pirating. The most dramatic change being the transition into the marketing of music and emphasis on concerts and merchandising. I propose to write a report on how such changes have allowed record companies to remain successful in todays fluctuating and dynamic market.
Need
Digital music pirating is a relatively new issue that the music industry desperately needs to solve to remain profitable.
Music listeners are using free sites such as Beemp3 and Youtube to upload songs and videos to their mp3 players.
Instant messenger allows users to send music files through an instant message to other users.
Music recommendation services like Pandora and Grooveshark provide songs instantly catered to the user's interests.
Software sharing services like Limewire provide users with free song downloads and P2P file sharing.
Although the theft of music helps in its spread and popularity amongst Gen-Y users, its effect on the production and creation of musical works is substantially negative due to the fact that it hinders the sale and legal distribution of music. This effect has led to the transition from record companies to music marketing companies.
Without such a dramatic change to this dynamic market, it would undoubtedly collapse and ultimately make the music industry as a whole disappear.
Topics
The quick distribution of new music needed, along with its accessibility
The widespread, increased crack-down on illegal distribution, not just single cases with large fines as examples
To follow the market trends on music players and it's effect on music attainability, as well as preferences of demographic groups
The economic solutions to combatting the lower profits selling music because of competition with free, illegal sources
This report will also display the amount of alleged "pirating" over recent years and explain the trend, as well as possible causes
Sources
The following items are key sources for the report.
1. Sutter, Katherina. "Sales And Marketing Trends In The Music Industry." Sales And Marketing Trends In The Music Industry. MusicDish Network, 2005. Web. 26 Apr. 2010. <http://www.get-it-all.net/indie112-Sales_And_Marketing_Trends_In_The_Music_Industry.htm >.
Katherina Sutter has experience in market research, music, dance, language, and interpretation. This review will be appreciated by record companies in the music industry. The author uses data from International Federation of the Phonographic Industry to support their hypothesis. Sutter has chosen to explore which marketing strategies have worked in the music industry. Based on her research, I believe the author's conclusions are justified.
2. Entertainment and Music Promotion. Publicity Wire, 1 Feb. 2010. Web. 26 Apr. 2010. <http://www.billboardpublicitywire.com/releases/2010/02/prweb3544664.htm >.
This press release will be appreciated by marketing companies in the music industry. The author uses data from DSN music to help support their hypothesis. Publicity Wire chose to explore in depth new strategies for distributing music. This work also includes song downloads, videos, and news feed. Based on the the research, I agree the conclusions in this press release are justified.
Alexander Osterwalder is a keynote speaker on "business model innovation" at Eurosonic Noorderslag. This article will be appreciated by anyone in the music industry. The author uses data from Social Science Research Network to support his hypothesis. Osterwalder includes slides from his keynote at Europe's live music industry conference.
This slideshow will be appreciated by business owners who want to get a better feel for what the new business model looks like compared to the pre-internet model. This presentation includes two slides comparing past and present day business models.
5. Smith, Gordon H. "Commentary: Don't Tread on Radio for Record Labels' Problems."Washingtonpost.com - Nation, World, Technology and Washington Area News and Headlines. 26 Apr. 2010. Web. 26 Apr. 2010. <http://www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042305058.html >.
This article will be appreciated by radio stations across the U.S. nation. The author uses data from the Recording Industry Association of America to help support his hypothesis. Smith chose to explore in depth the impact the new bill will have on radio stations if passed. I believe the author's conclusions are justified and useful information for all radio stations.
TO: Proximity Music Team
FROM: Yimaj Ibrahim
DATE: April 15, 2010
SUBJECT: Report Proposal for new business model for music industry
The transformation of the music industry from compact disc to digital recording has created the need for a radical change to the music industry's business plan due to illegal downloads and music pirating. The most dramatic change being the transition into the marketing of music and emphasis on concerts and merchandising. I propose to write a report on how such changes have allowed record companies to remain successful in todays fluctuating and dynamic market.
Need
Digital music pirating is a relatively new issue that the music industry desperately needs to solve to remain profitable.
Although the theft of music helps in its spread and popularity amongst Gen-Y users, its effect on the production and creation of musical works is substantially negative due to the fact that it hinders the sale and legal distribution of music. This effect has led to the transition from record companies to music marketing companies.
Without such a dramatic change to this dynamic market, it would undoubtedly collapse and ultimately make the music industry as a whole disappear.
Topics
This report will also display the amount of alleged "pirating" over recent years and explain the trend, as well as possible causes
Sources
The following items are key sources for the report.
1. Sutter, Katherina. "Sales And Marketing Trends In The Music Industry." Sales And Marketing Trends In The Music Industry. MusicDish Network, 2005. Web. 26 Apr. 2010. <http://www.get-it-all.net/indie112-Sales_And_Marketing_Trends_In_The_Music_Industry.htm >.
Katherina Sutter has experience in market research, music, dance, language, and interpretation. This review will be appreciated by record companies in the music industry. The author uses data from International Federation of the Phonographic Industry to support their hypothesis. Sutter has chosen to explore which marketing strategies have worked in the music industry. Based on her research, I believe the author's conclusions are justified.
2. Entertainment and Music Promotion. Publicity Wire, 1 Feb. 2010. Web. 26 Apr. 2010. <http://www.billboardpublicitywire.com/releases/2010/02/prweb3544664.htm >.
This press release will be appreciated by marketing companies in the music industry. The author uses data from DSN music to help support their hypothesis. Publicity Wire chose to explore in depth new strategies for distributing music. This work also includes song downloads, videos, and news feed. Based on the the research, I agree the conclusions in this press release are justified.
3. Osterwalder, Alexander. "The Music Industry (Part 1)- What's Broken." Business Model Alchemist. WordPress, 8 Jan. 2010. Web. 26 Apr. 2010. <http://www.businessmodelalchemist.com/2010/01/the-music-industry-business-model-innovation-part-i.html >.
Alexander Osterwalder is a keynote speaker on "business model innovation" at Eurosonic Noorderslag. This article will be appreciated by anyone in the music industry. The author uses data from Social Science Research Network to support his hypothesis. Osterwalder includes slides from his keynote at Europe's live music industry conference.4. "The Music Industry Business Model." Slide Share. 2009. Web. 26 Apr. 2010. <http://www.slideshare.net/gangofour/the-music-industry-business-model >.
This slideshow will be appreciated by business owners who want to get a better feel for what the new business model looks like compared to the pre-internet model. This presentation includes two slides comparing past and present day business models.
5. Smith, Gordon H. "Commentary: Don't Tread on Radio for Record Labels' Problems."Washingtonpost.com - Nation, World, Technology and Washington Area News and Headlines. 26 Apr. 2010. Web. 26 Apr. 2010. <http://www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042305058.html >.This article will be appreciated by radio stations across the U.S. nation. The author uses data from the Recording Industry Association of America to help support his hypothesis. Smith chose to explore in depth the impact the new bill will have on radio stations if passed. I believe the author's conclusions are justified and useful information for all radio stations.